VC firms denied permission to list

KP Liu (劉凱平), president of SonoPro Securities Investment Consulting, said a risky venture capital company can be listed on a stock exchange if a well-established securities regulatory system is in place to protect the interests of the general public.

"The major problem is how to prevent insider trading and securities fraud. Local and even foreign investors have frequently raised this issue with regard to Taiwan's stock market," Liu said.

But if Taiwan wants to compete with other Asian countries in the field of high technology, Taiwan should allow for the listing of venture capital companies on the OTC as soon as possible with reasonable listing requirements, Liu said.

Over 80 percent of the daily trading volume in the Taiwan Stock Exchange is already concentrated in high-tech companies. If some of the speculative funds could be invested in new high-tech companies through well-established venture capital companies, that could greatly help the capital formation of Taiwan's most competitive industry, Liu said.